Simplified anti-money launder bill introduced

Sen. Ramon Magsaysay Jr., chairman of the Senate committee on banks, introduced yesterday a substitute bill in a bid to address the objections of some senators against the Anti-Money Laundering Law.

Magsaysay, with the assistance of Senate President Franklin Drilon, and Senators Juan Flavier, Sergio Osmeña III, Loren Legarda, Robert Barbers, Panfilo Lacson, Renato Cayetano and Francis Pangilinan, came out with the 10-page simplified bill, in contrast to the 19-page bill he sponsored on the floor the other day.

The introduction of a substitute bill was approved by the senators in a caucus before the start of yesterday’s session. President Arroyo has certified the original bill, but Sen. Renato Cayetano said that the President need not issue a new certification for the new bill.

"This is a substitute bill, an amendment by substitution, so it is still covered by the earlier certification," Cayetano said.

A certified bill can be voted open on third and final reading on the same day it is approved on second reading. Without the President’s certification, a bill approved on second reading must wait for at least three days before it could be passed on third reading.

Magsaysay said that the new bill has cut down the number of illegal activities covered by money laundering from 16 to only five. Sen. Edgardo Angara and Cayetano had earlier criticized the inclusion of almost all conceivable crimes under the Revised Penal Code in the list of illegal activities.

"The amendment is correct. We should be concerned only with heinous crimes like illegal drugs, kidnap for ransom, plunder and graft and corruption, not crimes like fencing, illegal fishing, swindling, gambling or carnapping," Cayetano said.

Any person may be charged with and convicted of both the crime of money laundering and the felony constituting the unlawful activity.

The substitute bill also deleted the provision creating the Anti-Money Laundering Council that is supposed to exercise broad powers in implementing the law. Magsaysay said that instead of the Council, a Financial Investigation Unit (FIU) under the Monetary Board of the Bangko Sentral ng Pilipinas will serve as the watchdog for suspicious accounts.

Drilon said that the FIU will be made up of professional bureaucrats who will enjoy security of tenure.

Senators Tessie Aquino-Oreta and John Osmeña had earlier warned that placing broad powers in a Council composed of political appointees might make the Anti-Money Laundering Law an instrument for political persecution and harassment.

But while Magsaysay has expressed confidence that opposition would now be diminished with the introduction of the substitute bill, Angara is still far from satisfied.

"We agreed only to make the substitute bill a working draft. It is not as good as approved. It is still subject to many clarifications and amendments," he said.

Sen. Luisa Ejercito said that she opposes the grant of power to the Monetary Board to open bank accounts as contained in the substitute bill.

"That power should be vested in the courts," she said during her interpellation of Magsaysay.

Estrada said that while she favors the grant of authority to the FIU under the Monetary Board to freeze suspicious bank accounts for 20 days, the MB should not have the power to open the accounts.

She also said that the power to freeze accounts should not be absolute.

"The owner should be informed within 24 hours of the freeze and be given three days to justify his account," she added.

Ejercito also called for criminal sanctions against any capricious or arbitrary freezing of accounts by the FIU.

The substitute bill allowed for the freezing of the suspected account while it allows the depositor to explain the account to the Monetary Board. If the Monetary Board is not convinced of the explanation, the freeze can continue up to 20 days, unless the court will extend it.

Drilon said that this provision balances the police power of the state and the freedom of the depositor.

Sen. Francis Pangilinan, chairman of the Senate committee on justice, said that bank records will be accessible only when the courts allow the bank to release bank records.

Magsaysay said that he is amenable to the introduction of the amendments proposed by Estrada "at the proper time." He also said that there would also be an amendment calling for restitution to account owners unjustly deprived of his property under the proposed Anti-Money Laundering Law.